Shareholders' Equity Increased by $2.9 Million to $8.3 Million
HERNANDO, Florida, August 12, 2016 /PRNewswire/ --
National Waste Management Holdings, Inc., (OTCQB: NWMH) today announced financial results for the second quarter ending June 30, 2016 and provided a general business update.
Second Quarter 2016 Highlights:
- Revenue for the three months ended June 30,2016 increased 226% to $1.6 million compared to $479,534 for the same period last year;
- Revenue for the six months ended June 30, 2016 increased 258% to $3.1 million compared to $870,126 for the same period last year;
- Shareholders' equity increased to $8.3 million at June 30, 2016, compared to $5.4 million at December 31, 2015;
- Acquired Sivart Services, a roll-off and compactor company located in Worchester, NY, in an all cash transaction
- Continues to expand and improve profitability of Gateway Rolloff Services and Waste Recovery Enterprises.
Louis Paveglio, CEO of National Waste Management Holdings Inc., stated, "We are pleased to report our revenue has tripled 226% to $1.6 million for the second quarter of 2016. The increase in revenue is due to the execution of our business strategy of acquiring accretive companies such as Gateway Rolloff Services, L.P. ("Gateway") and Waste Recovery Enterprises, LLC ("WRE"), both of which we acquired in 2015."
"In the second quarter, we acquired Sivart Services, a roll-off and compactor company located in Worchester, NY, in an all cash transaction. We expect this acquisition will generate immediate revenue for the Company. It also allows us to rapidly expand our footprint in the northeast. Currently, we have a permitted waste facility in Bainbridge, NY and the acquisition of Sivart adds tremendous synergies to this business. In connection with the transaction, we have acquired all of Sivart's contracts and equipment, with some of this equipment being sent to Gateway Rolloff services to help with their rapid growth in Florida. This is one of many acquisitions we have lined up this year, which is consistent with our business strategy to acquire facilities that increase our geographic footprint, augment services to existing customers, and attract new customers in under serviced markets."
"We continue to grow and improve profitability of WRE and Gateway, since completing the acquisitions in the fourth quarter of last year. We are aggressively expanding our business and customer base by being able to offer better rates and comprehensive end-to-end solid waste solutions. We have improved our cash flow by 63% for the six months ended June 30, 2016 due to our increased sales from our WRE and Gateway acquisitions. We continue to get positive feedback from our customers and demand for our services in the region continues to grow. We are pleased with the progress our acquisitions have made and we believe we have demonstrated our ability to effectively integrate and organically grow these companies. We have identified several other accretive acquisitions that are consistent with our business strategy and we are in active discussions with several of these companies, which we look forward to announcing later this year."
"We continue to strengthen our balance sheet with shareholders' equity increasing to $8.3 at June 30, 2016, compared to shareholders' equity of $5.4 million at the end of 2015. We also added another independent board member to our board in June. We continue to make progress and are much closer to meeting all of the requirements for listing on a senior national stock exchange, which we believe will provide us a stronger platform for acquisitions, while increasing our visibility within the investment community."
Revenue for the three months ended June 30, 2016 was $1.6 million versus $479,534 for the quarter ended June 30, 2015. The increase in revenue was due to the acquisitions of WRE and Gateway Rolloff during the fourth quarter of 2015 and the execution of our business model, increasing our customer base and expanded sales to current customers.
Gross profit in the second quarter of 2016 was $583,997 or 37% of revenue versus $231,902 or 48% of revenue for the same period in 2015. Operating income for the second quarter of 2016 was $9,379 versus operating income of $119,357 for the second quarter of 2015. The decrease in operating income was due to non-cash depreciation and amortization expenses of $263,035.
Net loss for the second quarter of 2016 was $(5,913) or $(0.000) earnings per share, versus net income of $64,742 or $0.001 earnings per share for the second quarter of 2015. We incurred a one time charge for a loss on deposits, totaling $18,500. Without this one time charge to earnings, our net income would have been $12,587 or $0.0002 per share.
About National Waste Management Holdings Inc.:
National Waste Management Holdings Inc., is a growing and emerging vertically integrated solid waste management company with a concentration on C&D collection, hauling and recycling. National Waste services Florida's west coast and upstate New York and is a distinguished leader in solid waste services. More information may be found at the Company's website: http://www.nationalwastemgmt.com.
This release contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934, and are made in reliance upon the protections provided by such Acts for forward-looking statements. We have identified forward-looking statements by using words such as "expect," "believe," and "should." Although we believe our expectations are reasonable, our operations involve a number of risks and uncertainties that are beyond our control, and these statements may turn out not to be true. Risk factors associated with our business, including some of the facts set forth herein, are detailed in the Company's Form SEC filings.
NATIONAL WASTE MANAGEMENT HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS June 30, 2016 December 31, 2015 Assets Current assets: Cash and cash equivalents $ 276,976 $ 344,365 Accounts receivable, net 656,444 570,347 Prepaids and other current assets 66,790 38,362 Due from related party 54,473 54,473 Total current assets 1,054,683 1,007,547 Property and equipment, net 4,930,029 5,041,280 Other assets: 324,950 324,950 Secured letter of credit 1,354,721 1,413,353 Intangible assets, net Goodwill 2,215,236 2,179,183 Deferred tax asset 36,474 53,662 Other deposits 13,698 8,750 Total other assets 3,945,079 3,979,898 Total assets $ 9,929,791 $ 10,028,725 Liabilities and Stockholder's Equity (Deficit) Current liabilities: Accounts payable and accrued expenses $ 284,411 $ 261,199 Current portion of long term debt 146,073 184,932 Current portion of capital lease obligations 28,125 25,131 Due to related party 126,913 742,441 Short term related party acquisition notes 25,000 350,000 Accrued preferred stock dividends 100,000 - Total current liabilities 710,522 1,563,703 Long-term liabilities: Capital lease obligations, net of current portion 83,656 102,929 Long term debt, net of current portion 349,430 419,073 Environmental remediation obligation 424,596 424,596 2,017,3 Loan from shareholder - 01 Long term deferred tax liability 70,221 70,221 Total liabilities $ 1,638,425 $ 4,597,823 Commitments and contingencies (see note 5) Stockholders' equity (deficit): Common stock, no par value; 250,000,000 shares authorized, 66,923,312 and 62,880,483 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively. $ - $ - Series A Preferred stock, no par value; 10,000,000 shares authorized, 1 share and 0 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively - - Series B Preferred stock, no par value; 10,000,000 shares authorized, 2,000,000 shares and 0 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively 2,000,000 - Additional paid-in capital 6,238,415 2,456,136 Common stock subscribed 375,304 3,150,000 Retained earnings (deficit) (322,353 ) (175,234 ) Total stockholders' equity 8,291,366 5,430,902 Total liabilities and stockholders' equity $ 9,929,791 $ 10,028,725
NATIONAL WASTE MANAGEMENT HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Six Months Six Months Three Months Three Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2016 2015 2016 2015 Revenues $ 3,117,6 34 $ 870,126 $ 1,564,338 $ 479,534 Cost of revenues 1,897,375 445,539 980,341 247,632 Gross profit 1,220,259 424,587 583,997 231,902 Selling, general and administrative expenses 1,166,866 233,300 574,618 112,545 Income from operations 53,393 191,287 9,379 119,357 Other income (expenses): Interest expense (35,772 ) (19,620 ) (18,707 ) (11,454 ) Write off of landfill deposits (72,473 ) - - - Write off of other deposits (18,500 ) - (18,500 ) - Other expenses - (4,807 ) - - Total other income (expenses) (126,745 ) (24,427 ) (37,207 ) (11,454 ) Income (loss) before income taxes (73,352 ) 166,860 (27,828 ) 107,903 Income tax expense (benefit) (26,233 ) 63,744 (21,915 ) 43,161 Net income (loss) $ (47,119 ) $ 103,116 $ (5,913 ) $ 64,742 Net income (loss) per common share: Basic $ (0.001 ) $ 0.002 $ (0.000 ) $ 0.001 Diluted $ (0.001 ) $ 0.002 $ (0.000 ) $ 0.001 Weighted average number of shares outstanding: Basic 66,178,188 60,054,444 66,668,596 60,100,000 Diluted 66,178,188 60,054,444 66,668,596 60,100,000
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SOURCE National Waste Management Holdings Inc
Released August 12, 2016